(AVAV) AeroVironment - Overview
Sector: Industrials | Industry: Aerospace & Defense | Exchange: NASDAQ (USA) | Market Cap: 8.293m USD | Total Return: -2.2% in 12m
Avg Turnover: 177M
EPS Trend: 42.2%
Qual. Beats: 0
Rev. Trend: 92.0%
Qual. Beats: -1
Warnings
Share dilution 74.0% YoY
High Debt while negative Cash Flow
Interest Coverage Ratio -1.0 is critical
Beneish M-Score -1.03 > -1.5 - likely earnings manipulation
Tailwinds
No distinct edge detected
AeroVironment, Inc. (AVAV) specializes in the design and delivery of robotic systems and advanced technologies for global defense and commercial sectors. Its operations are divided into two primary segments: Autonomous Systems, which focuses on uncrewed aircraft (UAS), maritime, and ground systems; and Space, Cyber and Directed Energy, which develops satellite communications, laser data transmission, and electronic warfare solutions.
The company’s business model relies heavily on government contracts, particularly within the U.S. Department of Defense, where it provides loitering munitions and AI-powered intelligence platforms. As a leader in the small UAS category, AeroVironment benefits from the defense industrys shift toward portable, cost-effective tactical surveillance and precision strike capabilities.
Investors can further analyze the companys financial health and valuation metrics by visiting ValueRay. AeroVironment is headquartered in Arlington, Virginia, and has maintained a presence in the aerospace sector since 1971.
- Pentagon contract awards for Switchblade loitering munitions drive revenue growth
- Increasing international demand for tactical unmanned aircraft systems boosts export sales
- Department of Defense budget shifts toward autonomous systems impact long-term outlook
- Supply chain disruptions and component shortages threaten production scaling and margins
- Expansion into space and cyber segments diversifies revenue beyond traditional UAS platforms
| Net Income: -224.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.04 > 0.02 and ΔFCF/TA -1.13 > 1.0 |
| NWC/Revenue: 86.63% < 20% (prev 55.89%; Δ 30.74% < -1%) |
| CFO/TA -0.03 > 3% & CFO -174.2m > Net Income -224.4m |
| Net Debt (634.3m) to EBITDA (142.6m): 4.45 < 3 |
| Current Ratio: 5.51 > 1.5 & < 3 |
| Outstanding Shares: last quarter (48.8m) vs 12m ago 73.95% < -2% |
| Gross Margin: 21.82% > 18% (prev 0.40%; Δ 2.14k% > 0.5%) |
| Asset Turnover: 49.53% > 50% (prev 70.84%; Δ -21.31% > 0%) |
| Interest Coverage Ratio: -0.99 > 6 (EBITDA TTM 142.6m / Interest Expense TTM 75.1m) |
| A: 0.26 (Total Current Assets 1.70b - Total Current Liabilities 309.3m) / Total Assets 5.45b |
| B: 0.01 (Retained Earnings 33.3m / Total Assets 5.45b) |
| C: -0.02 (EBIT TTM -74.3m / Avg Total Assets 3.25b) |
| D: 0.02 (Book Value of Equity 27.8m / Total Liabilities 1.18b) |
| Altman-Z'' = 1.57 = BB |
| DSRI: 1.09 (Receivables 772.6m/326.0m, Revenue 1.61b/742.6m) |
| GMI: 1.81 (GM 21.82% / 39.58%) |
| AQI: 1.59 (AQ_t 0.64 / AQ_t-1 0.40) |
| SGI: 2.17 (Revenue 1.61b / 742.6m) |
| TATA: -0.01 (NI -224.4m - CFO -174.2m) / TA 5.45b) |
| Beneish M = -1.03 (Cap -4..+1) = D |
As of May 26, 2026, the stock is trading at USD 174.23 with a total of 1,161,800 shares traded.
Over the past week, the price has changed by +10.27%,
over one month by -10.99%,
over three months by -31.73% and
over the past year by -2.19%.
AeroVironment has received a consensus analysts rating of 4.37. Therefore, it is recommended to buy AVAV.
- StrongBuy: 10
- Buy: 6
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 309.9 | 77.9% |
P/E Forward = 43.29
P/S = 5.1498
P/B = 1.898
P/EG = 1.5652
Revenue TTM = 1.61b USD
EBIT TTM = -74.3m USD
EBITDA TTM = 142.6m USD
Long Term Debt = 727.9m USD (from longTermDebt, last quarter)
Short Term Debt = 15.6m USD (from shortTermDebt, last quarter)
Debt = 924.1m USD (from shortLongTermDebtTotal, last quarter) + Leases 98.1m
Net Debt = 634.3m USD (calculated: Debt 924.1m - CCE 289.9m)
Enterprise Value = 8.93b USD (8.29b + Debt 924.1m - CCE 289.9m)
Interest Coverage Ratio = -0.99 (Ebit TTM -74.3m / Interest Expense TTM 75.1m)
EV/FCF = -45.71x (Enterprise Value 8.93b / FCF TTM -195.3m)
FCF Yield = -2.19% (FCF TTM -195.3m / Enterprise Value 8.93b)
FCF Margin = -12.13% (FCF TTM -195.3m / Revenue TTM 1.61b)
Net Margin = -13.93% (Net Income TTM -224.4m / Revenue TTM 1.61b)
Gross Margin = 21.82% ((Revenue TTM 1.61b - Cost of Revenue TTM 1.26b) / Revenue TTM)
Gross Margin QoQ = 17.05% (prev 17.36%)
Tobins Q-Ratio = 1.64 (Enterprise Value 8.93b / Total Assets 5.45b)
Interest Expense / Debt = 8.12% (Interest Expense 75.1m / Debt 924.1m)
Taxrate = 1.98% (882k / 44.5m)
NOPAT = -72.8m (EBIT -74.3m * (1 - 1.98%)) [loss with tax shield]
Current Ratio = 5.51 (Total Current Assets 1.70b / Total Current Liabilities 309.3m)
Debt / Equity = 0.22 (Debt 924.1m / totalStockholderEquity, last quarter 4.27b)
Debt / EBITDA = 4.45 (Net Debt 634.3m / EBITDA 142.6m)
Debt / FCF = -3.25 (negative FCF - burning cash) (Net Debt 634.3m / FCF TTM -195.3m)
Total Stockholder Equity = 3.50b (last 4 quarters mean from totalStockholderEquity)
RoA = -6.90% (Net Income -224.4m / Total Assets 5.45b)
RoE = -6.41% (Net Income TTM -224.4m / Total Stockholder Equity 3.50b)
RoCE = -1.76% (EBIT -74.3m / Capital Employed (Equity 3.50b + L.T.Debt 727.9m))
RoIC = -1.45% (negative operating profit) (NOPAT -72.8m / Invested Capital 5.03b)
WACC = 11.36% (E(8.29b)/V(9.22b) * Re(11.74%) + D(924.1m)/V(9.22b) * Rd(8.12%) * (1-Tc(0.02)))
Discount Rate = 11.74% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 68.89 | Cagr: 30.14%
[DCF] Fair Price = unknown (Cash Flow -195.3m)
EPS Correlation: 42.20 | EPS CAGR: 18.07% | SUE: -0.29 | # QB: 0
Revenue Correlation: 91.97 | Revenue CAGR: 40.08% | SUE: -3.26 | # QB: -1
EPS current Quarter (2026-07-31): EPS=0.71 | Chg30d=-0.14% | Revisions=-20% | Analysts=10
[Analyst] Revisions Ratio: -20%